[2015]DLCA8304March 26, 2015Court of Appeal

MRS. JANET DOE vs. SOCIAL SECURITY AND NATIONAL INSURANCE TRUST THE TRUST HOSPITAL

The plaintiff/appellant in this suit was employed for over 20 years at the Trust Hospital as an employee of SSNIT, the 1st defendant/Respondent. In the High Court, her case was that SSNIT entered into an organizational restructuring exercise which separated the Trust Hospital from the organization. The Trust Hospital was taken over by the 2nd defendant/respondent, which had been incorporated as a separate legal entity. This exercise made her redundant along with other staff effective 31st December 2012. She argued that under Section 65 of the Labor Act 2003 (Act 651), SSNIT, was required by law to negotiate a redundancy package with her but they failed to do so. It reads - Section 65 – Redundancy 2) Without prejudice to subsection (1), where an undertaking is closed down or undergoes an arrangement or amalgamation and the close down, arrangement or amalgamation causes a. severance of the legal relationship of worker and employer as it existed immediately before the close down, .....